Section 5. The Board covenants that the University
within six months of the date of the issuance of the Bonds
will spend all of the proceeds derived from the sale of that
portion of the Bonds issued to finance the Projects for costs
associated with the Projects. The Board further covenants
that the University, either alone or in conjunction with the
Treasurer of Virginia, will, to the extent permitted by
Virginia law, take all other actions necessary to maintain
the exemption of interest on the Bonds from gross income
under Federal and Virginia law and, unless advised in writing
by bond counsel for the issuance of the Bonds that such
compliance is not necessary in order to maintain such exemption,
to comply with the provisions contained in the Internal
Revenue Code of 1986, as amended, relating to tax-exempt
obligations, including without limitation (a) refunding any
obligations previously issued to finance the Projects within
30 days of the issuance of the Bonds (unless the Treasurer of
Virginia permits a longer period of time), and (b) paying any
required rebate to the United States, all as may be directed
by the Treasurer of Virginia.
